QEX - QEX Logistics

[Chanchay]

Significant downgrade of outlook on NZX. It's clear there have been insiders selling knowing this info since the annual report.

No depth to sell. I will be selling as soon as I can and not touch anything from the backers of this company.

[Ggcc]

Significant downgrade of outlook on NZX. It's clear there have been insiders selling knowing this info since the annual report.

No depth to sell. I will be selling as soon as I can and not touch anything from the backers of this company.

I don't see all the doom and gloom. Sure they have needed to discount items to compete, but after that statement they mentioned.

Offsetting the above, QEX has started selling milk powder to Australian diagou and is seeing strong growth in revenues in this market.

I do like their longterm future, so I have invested a small amount into this share. This discounting happened with A2 as well when they were changing packaging and everyone was in a panic.

I look forward to seeing the QEX results after 12 months trading.

[pg0220]

I don't see all the doom and gloom. Sure they have needed to discount items to compete, but after that statement they mentioned.

Offsetting the above, QEX has started selling milk powder to Australian diagou and is seeing strong growth in revenues in this market.

I do like their longterm future, so I have invested a small amount into this share. This discounting happened with A2 as well when they were changing packaging and everyone was in a panic.

I look forward to seeing the QEX results after 12 months trading.

The first half's revenue is going to be the same as the same period in the last year, so no downgrade in revenue. Starting to see an increase in both volumes and margins for infant formula sales from August so this should help the revenue increase in the second half.

It would be interesting to see progress in Australian market expansion. If goes well, this would be a game changer for them.

[Ace]

I don't see the doom and gloom either, I know there was a rebranding with aptamil and nutricia around April, revenue expected to be the same as last year so they're not going backwards and we know they have solid foundations so that last year wasn't a stellar year for them and moreso a 'norm' dare I say. As you can consider this business running in parallel to ecommerce in someways due to working heavily with daigou, it's fair to look at some metrics which view it as such. From memory when I last checked last month web traffic to Qexpress website has increased by around 100-200% in a 6month period checking on SEMRUSH and it's ranked in the top 500k-600k websites in traffic moving up significantly since last year, take from that what you will (it moved up around 200-300k placed in the last 90 days when I last checked, down about 90k places now so up around 150k~). Traffic is indicative of customer and client volumes as they use the online portal to check tracking codes and book shipments. So despite the poor macro conditions QEX is holding it's ground with significantly higher web traffic volumes, projected growth in the second half now that old discounted stock has been sold off with only margins and a competitive landscape holding us back for now. A bit of speculation on my part, should margins return with the higher level of volume we should see a nice little bump back up. A little hiccup to this growth story that's all.

[forest]

Significant downgrade of outlook on NZX. It's clear there have been insiders selling knowing this info since the annual report.

No depth to sell. I will be selling as soon as I can and not touch anything from the backers of this company.

Mm, another way of looking at this is if 1st half of 2020 revenue is same as 1st half of 2019 as forcast than we have a 20% increase in revenue this halve compared with second half of 2019.
The first half of 2019 was by far QEX best halve of revenue.
Yes a pity about margins but company has explained this.

[Aarrgghh]

1. There has been some obvious insider trading going on in the past few months. It's not the first time QEX share price has fallen before a negative announcement.

2. That announcement has intentionally written vaguely. It only mentions revenues with a passing mention of volume. If your volumes are up then your operating costs are up. If your operating costs are up and your revenues are flat then your profit is down. The company expects a decrease in profit but they're not saying how much.

[Ace]

1. There has been some obvious insider trading going on in the past few months. It's not the first time QEX share price has fallen before a negative announcement.

2. That announcement has intentionally written vaguely. It only mentions revenues with a passing mention of volume. If your volumes are up then your operating costs are up. If your operating costs are up and your revenues are flat then your profit is down. The company expects a decrease in profit but they're not saying how much.

Yeah it appears so, although the announcement that followed that drop in price was quite a positive announcement? I don't recall a negative announcement.
It would make sense that operating costs are up with higher volumes, although that being said as per the announcement the reduction in margins for a product was one-off in April and May and from August margins are improved with growing momentum. Keep in mind last year we had one off listing costs that noticeably reduced profit, the SP was a lot higher at that time - we've seen a drop from 1.5 to 1.2 and a gradual decline to 85, and now 20% today off the announcement that we will see similar revenue numbers as the same period last year, with a stronger second half. That's a huge discount to what people were prepared to pay for the same company not too long ago. Granted, we expect to see growth and the company is priced as such, the question is whether this is a temporary lull as compared to a continued decline in the company. I prefer and expect the former based on what was announced.

[Drew95]

YIKES!! Down to 60 cents. I bought in at $1.12 at the end of May. I decided to sell in June at $1.05. It seems I dodged a bullet there.

[kiora]

CFO gone
Raised $2.5m by issuing new shares at $1.15/share.Who to?
Operating Cash flow -$3.5m

[Ace]

CFO gone
Raised $2.5m by issuing new shares at $1.15/share.Who to?
Operating Cash flow -$3.5m

Around ~1m to Lindsay Investment trust, SPP taken up by wholesale and retail investors and closed the same day AFAIK. $270k+ volumes through today, with $170k on two buyers, made up the 10% loss from yesterday.